Finance Minister Colm Imbert says Petrotrin will not be able to pay any increase - if awarded by the Industrial Court - for the period 2011 to 2014.
Imbert said that while responding to a motion of urgent, definite importance by Opposition MP Rudranath Indarsingh in the House of Representatives yesterday.
The union has served strike notice on the company and it is expected to take effect on Monday.
The matter was before the court for conciliation yesterday. A ruling is expected on Sunday.
Imbert said the company was not in any position to pay any increase whatsoever. He said the Ministry of Finance will have to foot the bill if an award for any increase was granted by the court.
He said at a meeting earlier yesterday with officials of the company he was told that whatever settlement was reached for an increase to the workers "the Ministry of Finance will have to foot the bill because the company can't pay."
He said the company lost $800 million in 2015 and $600 last year and it owes the Government $1.2 billion in unpaid royalties and taxes.
Imbert said the company promised to resume quarterly payments of taxes and royalties.
Imbert, who is the acting Energy Minister, said Petrotrin requested the support of the Finance Minister for any award that could be given to the workers by the court.
He said the government was looking at various scenarios for the possible resolution of the matter.
Imbert said the possibility of strike action could have been prevented if the former People's Partnership government had settled the 2011 to 2014 negotiations.
Minister in the Office of the Prime Minister and the Attorney General, Stuart Young said the 2015 to 2018 negotiations can only be determined after the court makes a determination on the 2011 to 2014 period.